Falguni Nayar: Nykaa makes glowing debut with $14 billion valuation

Falguni Nayar: Nykaa makes glowing debut with $14 billion valuation

Indian cosmetics-to-fashion platform surged 96% in a blockbuster debut on Wednesday, fetching the nation’s first women-led unicorn a valuation of practically $14 billion.

Shares of FSN E-Commerce Ventures, the corporate that owns the Nykaa model, ended at Rs 2,205.80 after debuting at Rs 2,018 in pre-open commerce.

The debut worth was a 79.4% premium to the supply worth of Rs 1,125 and the shares had been oversubscribed practically 82 occasions final week.

Based by former funding banker Falguni Nayar in 2012, Nykaa grew to become standard by promoting cosmetics and grooming merchandise from home in addition to worldwide manufacturers earlier than increasing into style, pet care and family provides.

“Nykaa is likely one of the only a few worthwhile new-age corporations and the primary women-led unicorn that has additionally attracted lot of investor curiosity …,” mentioned Sneha Poddar, assistant vice-president, retail analysis at Motilal Oswal Monetary Providers.

“(Its) key strengths lie in its inventory-led enterprise mannequin for the sweetness and private care section.”


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Nykaa’s traders embody private-equity agency TPG, Constancy and Indian celebrities Alia Bhatt and Katrina Kaif.

The startup runs its on-line operation by means of cellular purposes and web sites together with 80 brick-and-mortar shops in India, as of Aug. 31.

At a valuation of practically $14 billion, Nykaa exceeded Indian meals supply startup Zomato Ltd’s stellar $13.28 billion debut in July.

“Nykaa has a seen a powerful itemizing on account of constructive market sentiment… Nonetheless, the startup’s valuations look costly at these ranges regardless of factoring in sturdy long-term progress prospects,” mentioned Ajit Mishra, vice-president-research at Religare Broking. In a pointy distinction to investor enthusiasm for Indian startups, Indian fintech agency Paytm noticed tepid demand for its shares earlier within the day, crawling in the direction of full subscription within the ultimate hours of its subject interval.

The Ant Group-backed firm, whose public providing is India’s largest ever, is about to debut on Nov. 18, whereas SoftBank-backed corporations lodge aggregator Oyo and logistics supplier Delhivery are lined up for an inventory quickly.

Additionally Learn:
Falguni Nayar’s internet value tops $6.5 billion after Nykaa’s blockbuster itemizing

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